This week:
- Tariffs on US imports from Canada and Mexico go live after a one-month delay
- ILA ratifies six-year master contract with USMX, securing work at US East and Gulf Coast ports
- USTR completes investigation into China’s maritime trade practices, proposes high port entry fee
- Report from supply chain security firm indicates US cargo theft moving away from coast hotspots
Trump Implements 25% Tariffs on Canada, Mexico; Additional 10% on China
Shortly after midnight Tuesday, President Donald Trump implemented 25% tariffs on most US imports from Canada and Mexico. Trump originally announced the tariffs on February 4 but later delayed them for a month. The only exception is that the duties are limited to 10% on Canadian energy products.
At the same time, the President also levied an additional 10% tariff on top of any existing duties for imports from China, on top of the 10% Trump ordered last month.
Canadian Prime Minister Justin Trudeau said his country would add tariffs on more than $100 billion of American goods over the next three weeks. Chinese Foreign Ministry spokesperson announced extra tariffs of up to 15% on US farm exports, and Mexican President Claudia Scheinbaum said she will announce retaliatory tariffs this Sunday.
In recent weeks, President Trump has announced plans for more new import duties, including those on all steel imports, reciprocal tariffs for all US trade partners, and 25% tariffs on imports of cars and other products from the European Union. While the timeline for implementing these tariffs is unclear, industry observers point to the April 2 due date for a report from federal agencies on US trade policies.
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After Years of Negotiation and Strike, ILA Ratifies Six-Year Deal With USMX
Following three years of negotiations and a three-day strike last October, the International Longshoremen’s Association (ILA) has ratified a new six-year master contract with the United States Maritime Alliance (USMX), covering US East and Gulf Coast ports. The deal, which delivers substantial wage increases and safeguards against port automation technology, is retroactive to October 1, 2024, and lasts until September 30, 2030.
The ILA and USMX will formally sign the contract within two weeks. The agreement includes a significant pay raise for all dockworkers, with even larger percentage increases for new hires. The starting wage for first-year workers jumps from $20 to $27 per hour immediately and will rise to $30 by 2026. There is an overall 62% wage increase across the contract’s top wage tier and an average raise of $4 per hour for all workers.
While the ILA secured stronger protections against automation — a key sticking point in the protracted negotiations — the USMX gained concessions on the remote operation of terminal equipment and the implementation of operator assistance technology.
USTR Completes Investigation, Seeks Public Comment on Proposed Port Fees
The United States Trade Representative (USTR) recently completed an investigation into China’s maritime practices and is now seeking public comments on proposed trade actions, including substantial fees at US ports.
The USTR’s investigation, initiated after a 2024 petition from manufacturing labor unions, concluded that China has systematically pursued dominance in shipbuilding and global maritime trade for nearly three decades. In a statement issued Friday, the USTR argues that China’s actions have stifled competition, created economic vulnerabilities for the US, and undermined supply chain resilience.
The USTR’s proposed counteractive measures include a port fee of up to $1 million per entry for China-operated vessels or $1,000 per net ton. The agency has also proposed refunds of up to $1 million per entry for operators using US-built vessels.
The investigation began last year during the administration of former President Joe Biden. Trump appointee Jamison Greer will soon lead the USTR. The agency is encouraging public comment on its proposals through March 10. A public hearing is set for March 24 at the US International Trade Commission in Washington, DC.
Cargo Theft Surges Across US, Criminals Target New Markets and Methods
According to multiple news reports, Amazon is poised to enter the US less-than-truckload (LTL) market. Writing for Freightwaves on Friday, Michael Rudolph said rumors about Amazon’s apparent move into LTL are substantiated by recent job postings within Amazon Freight, its existing truckload and intermodal division.
If Amazon becomes a for-hire LTL carrier, industry observers say the potential for market disruption is significant. JP Morgan analyst Brian Ossenbeck said Amazon’s extensive network and logistics infrastructure represent a competitive threat to current LTL carriers.
Amazon’s apparent move into the market comes at a difficult time for LTL operators. TFI International CEO Alain Bedard recently described the freight industry as being in a “deep recession,” pointing to low volumes. Bedard predicts the first half of 2025 will be even more challenging for the LTL sector.
However, some carriers are cautiously optimistic about a potential recovery in the latter half of the year. Old Dominion cited positive indicators like the Purchasing Managers’ Index (PMI) returning to expansion in January.
